AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis
TSX:ARG - Toronto Stock Exchange - CA03074G1090 - Common Stock - Currency: CAD
Overall ARG gets a fundamental rating of 7 out of 10. We evaluated ARG against 811 industry peers in the Metals & Mining industry. While ARG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ARG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ARG also has an excellent dividend rating. These ratings would make ARG suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
ARG had positive earnings in the past year.
ARG had a positive operating cash flow in the past year.
ARG had positive earnings in each of the past 5 years.
ARG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARG has a Return On Assets of 9.36%. This is amongst the best in the industry. ARG outperforms 93.71% of its industry peers.
ARG has a Return On Equity of 18.36%. This is amongst the best in the industry. ARG outperforms 95.44% of its industry peers.
With an excellent Return On Invested Capital value of 14.95%, ARG belongs to the best of the industry, outperforming 97.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARG is significantly below the industry average of 24.67%.
The last Return On Invested Capital (14.95%) for ARG is above the 3 year average (8.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.36% | ||
| ROE | 18.36% | ||
| ROIC | 14.95% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ARG (9.98%) is better than 92.85% of its industry peers.
In the last couple of years the Profit Margin of ARG has declined.
Looking at the Operating Margin, with a value of 19.76%, ARG belongs to the top of the industry, outperforming 92.85% of the companies in the same industry.
In the last couple of years the Operating Margin of ARG has declined.
ARG's Gross Margin of 23.56% is amongst the best of the industry. ARG outperforms 89.40% of its industry peers.
ARG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.76% | ||
| PM (TTM) | 9.98% | ||
| GM | 23.56% |
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARG is still creating some value.
Compared to 1 year ago, ARG has about the same amount of shares outstanding.
The number of shares outstanding for ARG has been reduced compared to 5 years ago.
Compared to 1 year ago, ARG has an improved debt to assets ratio.
2.2 Solvency
ARG has an Altman-Z score of 2.93. This is not the best score and indicates that ARG is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.93, ARG is doing good in the industry, outperforming 60.54% of the companies in the same industry.
The Debt to FCF ratio of ARG is 0.21, which is an excellent value as it means it would take ARG, only 0.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARG (0.21) is better than 96.05% of its industry peers.
ARG has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
ARG has a Debt to Equity ratio (0.03) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.69
WACC8.83%
2.3 Liquidity
ARG has a Current Ratio of 0.90. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.90, ARG perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that ARG may have some problems paying its short term obligations.
ARG's Quick ratio of 0.79 is on the low side compared to the rest of the industry. ARG is outperformed by 60.17% of its industry peers.
The current and quick ratio evaluation for ARG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 550.00% over the past year.
The earnings per share for ARG have been decreasing by -18.96% on average. This is quite bad
The Revenue has grown by 22.43% in the past year. This is a very strong growth!
Measured over the past years, ARG shows a quite strong growth in Revenue. The Revenue has been growing by 9.98% on average per year.
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)22.43%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%19.68%
3.2 Future
ARG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.37% yearly.
Based on estimates for the next years, ARG will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ARG is valuated reasonably with a Price/Earnings ratio of 9.61.
ARG's Price/Earnings ratio is rather cheap when compared to the industry. ARG is cheaper than 95.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.85. ARG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.85, the valuation of ARG can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARG is valued cheaper than 94.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARG to the average of the S&P500 Index (20.77), we can say ARG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
ARG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARG is cheaper than 98.27% of the companies in the same industry.
98.64% of the companies in the same industry are more expensive than ARG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.03 | ||
| EV/EBITDA | 2.94 |
4.3 Compensation for Growth
ARG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ARG has an outstanding profitability rating, which may justify a higher PE ratio.
ARG's earnings are expected to grow with 39.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y39.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.78%, ARG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.89, ARG pays a better dividend. On top of this ARG pays more dividend than 99.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ARG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
5.2 History
The dividend of ARG is nicely growing with an annual growth rate of 24.22%!
ARG has paid a dividend for at least 10 years, which is a reliable track record.
ARG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.22%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
100.48% of the earnings are spent on dividend by ARG. This is not a sustainable payout ratio.
ARG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100.48%
EPS Next 2Y39.37%
EPS Next 3YN/A
TSX:ARG (4/30/2025, 7:00:00 PM)
1.73
-0.02 (-1.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners23.88%
Inst Owner ChangeN/A
Ins Owners12.87%
Ins Owner ChangeN/A
Market Cap284.36M
Analysts84
Price Target2.55 (47.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
Yearly Dividend0.16
Dividend Growth(5Y)24.22%
DP100.48%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-42.24%
Min EPS beat(2)-50.49%
Max EPS beat(2)-33.99%
EPS beat(4)1
Avg EPS beat(4)-16.67%
Min EPS beat(4)-50.49%
Max EPS beat(4)18.81%
EPS beat(8)4
Avg EPS beat(8)7.14%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.47%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-6.78%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)-1.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.54%
Revenue beat(16)5
Avg Revenue beat(16)-1.84%
PT rev (1m)0.52%
PT rev (3m)25.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.85 | ||
| P/S | 1.07 | ||
| P/FCF | 4.03 | ||
| P/OCF | 3.44 | ||
| P/B | 1.96 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 2.94 |
EPS(TTM)0.18
EY10.4%
EPS(NY)0.2
Fwd EY11.3%
FCF(TTM)0.43
FCFY24.82%
OCF(TTM)0.5
OCFY29.07%
SpS1.62
BVpS0.88
TBVpS0.86
PEG (NY)1.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.36% | ||
| ROE | 18.36% | ||
| ROCE | 27.05% | ||
| ROIC | 14.95% | ||
| ROICexc | 20.05% | ||
| ROICexgc | 20.62% | ||
| OM | 19.76% | ||
| PM (TTM) | 9.98% | ||
| GM | 23.56% | ||
| FCFM | 26.48% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
ROICexc(3y)10.81%
ROICexc(5y)N/A
ROICexgc(3y)11.1%
ROICexgc(5y)N/A
ROCE(3y)15.09%
ROCE(5y)N/A
ROICexcg growth 3Y-6.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y-6.66%
ROICexc growth 5YN/A
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
F-Score9
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 37.4% | ||
| Cap/Sales | 4.53% | ||
| Interest Coverage | 26.42 | ||
| Cash Conversion | 97.28% | ||
| Profit Quality | 265.31% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.93 |
F-Score9
WACC8.83%
ROIC/WACC1.69
Cap/Depr(3y)56.05%
Cap/Depr(5y)50.06%
Cap/Sales(3y)7.03%
Cap/Sales(5y)5.9%
Profit Quality(3y)227.23%
Profit Quality(5y)233.17%
High Growth Momentum
Growth
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-33.33%
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)22.43%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%19.68%
Revenue Next Year-0.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y383.44%
EBIT growth 3Y-17.31%
EBIT growth 5YN/A
EBIT Next Year77.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1404.42%
FCF growth 3Y-14.58%
FCF growth 5YN/A
OCF growth 1Y194.75%
OCF growth 3Y-13.96%
OCF growth 5Y43.83%